Gas contract with Argentina is in force and will only be modified if it is favorable to Bolivia

Thursday, November 8, 2018

The Minister of Hydrocarbons, Luis Alberto Sanchez, said Thursday that "the natural gas contract with Argentina is in force and will be modified as long as the new conditions are favorable for Bolivia, which has invested to comply with the $ us5,000 contract. millions in exploration, development, pipelines and thanks to these investments, we are guaranteed 3.7 Trillion Cubic Feet (TCF), which remains to deliver to Argentina. "

For Sánchez it is necessary "to clarify to the Bolivians that the reengineering of the gas contract with Argentina should not worry us, first, because the contract will only be modified if the new conditions are going to be more beneficial in economic terms for Bolivia and, second, because Argentina It is not the only Bolivian gas market. " In this regard, he referred to the Memorandum of Understanding signed yesterday (Wednesday) with Paraguay through which the negotiations for the sale of natural gas to that country through a bi-national gas pipeline that would be built. He referred to natural gas markets in the Brazilian states of Mato Grosso, Mato Grosso Do Sul, Santa Catarina, Paraná, the supply of gas to the Thermoelectric plants in Brazil and to natural gas distribution companies, which already have important advances and It hopes to materialize them in the medium term. On the other hand, he referred to the negotiations for the extension of the Contract with Petrobras. He also pointed out that in Argentina there is an opening of other markets besides IESA (ex Enarsa). He also referred to the competitive prices in the Bolivian natural gas region that make it attractive to businesses with Bolivia.

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The minister affirmed that Bolivia and Argentina are currently negotiating the issue of the daily nominations of gas volumes that the neighboring country makes that fluctuate depending on the season, in winter it reaches 180 million cubic meters day (MMmcd) and in winter the 120 MMmcd, "nominations that are variable by day, with abrupt daily rises and falls affecting the reservoirs in Bolivia, for example, one day they nominate 20 MMmcd and the next day 8 MMmcd and these volumes are nominated hours before the completion We look for quarterly nominations to have greater certainty about shipments. "

Sanchez said that the oil rent that Bolivia will receive in 2019 will be greater than what it will receive at the end of the present administration, which in turn is greater than that received in 2017. "If Bolivia has sold an average of export volume between 41 and 45 MMmc year, this 2018 will receive approximately $ us2,200 million, last year the Oil Revenue was $ us1,900 million and I can give assurance that next year we will export the same volumes or more than the 2018 management and the income will be income will also be equal to or greater than this year, we have the certainty that the export of gas will continue to be a fundamental pillar, "Minister Sánchez concluded.

This press release from Bolivia's Ministry of Hydrocarbons was published using an automatic translation system.